Ethics Theory Flashcards

Question

What are the steps for the decision tree?

Answer 1

Do you have sufficient facts on the issue? Is it legal? Is it in line with the RICS ROC? Have you consulted with appropriate people to make an informed decision? Do you have clear reasoning in reaching your decision? Is your decision informed? Would you be content for your actions to be made public? If so Act and Record

Answer 2

Avoid Price Fixing, aggressive fee cutting or collussion with competitors. Fees should be market based and agreed on an ad-hoc basis with clients Healthy competition encouraged but fee cutting not allowed Can enter into fee negotiations but must act in a professional manner Consider the service and amount of time and competence when deciding a fee May wish to vary proposed level of service when renegotiating but ensure you are still able to provide a high quality service Should not be seen to be undercutting another firm Should be completely transparent in terms of referral fees etc Granting and acceptance of referral fees should be considered in the context of the Bribery Act 2010 and the ROC 2021

Answer 3

Fee basis Payment of expenses Complaints handling procedures

Answer 4

Check Professional Competence No conflicts of interest Confirm terms of engagement in writing and get written approval from the client before you start the work.

Answer 5

Section 18 of the Estate Agents Act 1979 and money laundering checks (Money laundering Regulations 2017) Consumer Rights Act 2015 - Allows a cooling off period of 14 days from the date of the agreement

Answer 6

Not competent - outside of your limitations Don't have sufficient facts on the issue TOE not signed or AML checks not complete COI or personal interest PII cap cant be agreed Advice is for a friend or on a pro bono basis and your PII cover wont cover this Client is on the Governments sanctions list Would you be content for your actions to be made public?

Answer 7

When a member of a firms independence and impartiality is threatened due to the existence of a conflict between two clients. eg.. Any financial interest A personal interest Commercial relationships Acting on both sides of a transactions

Answer 8

Conflict avoidance is when you do not accept the instruction. CM is when the instruction is accepted and steps are agreed and put in place to manage the conflict such as information/ethical barriers with the written agreement of all parties.

Answer 9

NO - always have to stand back and make your own judgement

Answer 10

A member must not advise or represent a client where doing so would involve a COI or a significant risk of a COI other than where all those who are, or may be affected have provided formal consent. Informed consent may only be sought where the RICS member or regulated firm is satisfied that proceeding despite a COI is in the interests of all those who are or may be affected and it is not prohibited by the law

Answer 11

Party - Relating to work on the same or related instruction for two different parties Own Interest - personal interest Confidential Information - Work between two parties that is confidential

Answer 12

Can only be given in writing by the party if the person explaining the position to them is entirely transparent about any material factors and sure that the party affected understands what they are doing. Only seek IC if satisfied that all relevant parties are best served by doing so

Answer 13

All firms must keep records to show their compliance

Answer 14

1. Conflict avoidance - Upon recipt of the full facts, consider whether the conflict is irresolvable bevause your impartiality is comprimised and should be avoided or whether it can be properly managed maintaining transparency and openness. 2. Written advice to both parties - Set out in writing the following three points 1 - Disclose the nature of the conflict and the circumstances surrounding it and how your firm intends to deal with it (information barriers) 2- Be clear to ensure both parties can make their own informed decisions. 3 - Request written confirmation from both parties of the informed consent that your firm can continue with the instruction 3. Conflict management - Once you have informed consent ensure information barriers are set up

Answer 15

The barrier must be robust enough to ensure no information passes between the two parties Take reasonable steps to operate an effective barrier Surveyors on either side must be physically seperated Virtual IT barrier All information should be securely stored Keep a clear documentation of the conflict check process. The firms compliance officer must oversee the proceedings.

Answer 16

Where an agent has a contractual agency relationship with both the seller and the buyer at the same time. This must not be undertaken at any time from 01/01/2018

Answer 17

Where an agent has competing contractual relationships simultaneously with several buyers for commercial real estate opportunities - exclusive vs no exclusive buying agent. If non exclusive agent must obtain informed consent from the client subject to the necessary barriers being put in place.

Answer 18

Where an agent is approached by another party to provide advice, to the valuation, building surveying or planning, related to a purchase or disposal that is incremental to an existing instruction. Eg Selling agent approached by buyer to provide a valuation ONLY provide such incremental advice if consent is given and an information barrier is put in place before providing any incremental advice to the buyer

Answer 19

When acting for a family member or close friend or a 'connected person' DO NOT let a personal interest interfere with or influence your personal judgement - full transparency required. Remember Section 21 of Estate Agents Act 1979 declaration for agency work

Answer 20

Client confidentiality must be maintained for all client affairs - this includes historic information and information provided by a client prior to instruction

Answer 21

Get client approval first unless you are subject to a statutory duty overriding the clients confidentiality rights, such as a police or HMRC investigation

Answer 22

Minimum of 6 years before being disposed and destroyed securely

Answer 23

This cannot be used for your own purposes. If an email for example, the client and sender should be advised of the error. The matter should be recorded in a note to the firms compliance officer. Any confidential material received in error should be disposed of securely.

Answer 24

All RICS regulated firms must have a CHP which meets the requirements of the RICS Rules of Conduct 2021

Answer 25

As soon as the complaint is logged as it could lead to a claim for negligence

Answer 26

To show the details, progress and outcome of any complaints

Answer 27

Must include an RICS approved ADR mechanism in the CHP

Answer 28

Alternative Disputes Resolution

Answer 29

In house - Details of the CHP should be issued to the client and request the complaint in writing. Procedure must be quick, clear and transparent Details of the Complaints handling officer who will deal with the claim Procedures and strict timescales for the investigation of the complaint. Acknowledged within 7 days and investigated within 28

Answer 30

ADR If the complainant is not happy with the review, an independent redress scheme should be used The name of the IRS must be provided to the complainant, such as The centre for Effective Dispute Resolution, The Property Redress Scheme and the RICS Dispute Resolution Service

Answer 31

If a member fails to respond to the complaint or prevents the party gaining access to an independent redress mechanism

Answer 32

Nominate a surveyor in another firm to act as their complaints handling officer

Answer 33

20 hours a year, 10 formal CPD Maintain an understanding of the RICS Rules of Conduct during a rolling 3 year period Record CPD activity using the RICS CPD management System on the 31st of January every year

Answer 34

Structured learning that has clear learning objectives and outcomes Eg.. online training, seminars, professional courses

Answer 35

Self managed learning that is relevant or related to your professional role. eg... private study, on the job learning or informal seminars and events

Answer 36

To clients and third parties, using a 'reasonable care and skill'. When breached and there is a loss, a claim for damages arises.

Answer 37

Established that a residential valuer instructed by a mortgagor lending institution could owe a duty of care in tort to a mortgagee purchaser relying on a valuation

Answer 38

The current limitation periods for negligence: Contract - 6 years from the date of the negligent act, breach of contract or omission. Also Section 14A provides an alternative information period of 3 years from the date of knowledge of the damage subject to the 15 years long stop from the negligent act or omission. Tort - 6 years from the date the claimant suffered the loss

Answer 39

Clearly understand the clients objetives and confirm precise instructions in the TOE Ensure competence Undertake the work in accordance with RICS guidance Make detailed file notes and take pictures Keep up to date with market knowledge and legislation through CPD Cap and professional liability excess on your PII policy in terms of engagement

Answer 40

Mandatory for surveyors in the workplace Protects clients surveyors and third parties against negligence claims when there is a duty of care breached and a claim for damages arises Details set out in the RICS 'PII Requirements' April 2022 All policies must be underwritten by an RICS approved insurer

Answer 41

Based on turnover £100K or less = £250,000 £100,001 to £200,000 = £500,000 £200,001 + = £1,000,000 Firms must consider their likely risk profile to negligence, above is only minimum levels

Answer 42

Estimate the turnover and adjust in due course accordingly

Answer 43

Relates to the firms turnover in the preceding year Up to £10m = The greater of 2.5% of the sum insured or £10,000 Over £10m = No set limit. The policy should be fully retroactive. PII policies work on a claims made basis... ie policies cover claims that are made during the period of insurance regardless of when the negligent act occurred. PII certificate should be sent to the RICS on an annual basis as part of the firms annual return to RICS. Early notification to firms insurers is required when a potential claim arises

Answer 44

Adequate and appropriate run-off cover is required following cessation of trading: For consumer claims, minimum of £1,000,000 of aggregate cover over a period of 6 years For commercial claims, must consider what is adequate and appropriate for a minimum of 6 years If firms are unable to source run off cover from their incumbent insurer then can apply for coverage to the RICS Run-off Pool

Answer 45

Recommends the use of liability caps to manage risks associated with professional work Be aware of third party resilience and make it clear that advice can only be relied upon by the client named in their terms of engagement

Answer 46

Hold Client Money Providing information to clients Recipts of client money Payments from client accounts Accounting records and controls Compliance Anyone in teams with access to client money must be familiar with the above

Answer 47

Client accounts must be kept separate and clearly identifiable The word 'client' is on the bank account and cheque book A client must be able to have their monies on demand Payment of interest is agreed with the client and accounts must be kept in credit Regular bank reconciliation checking that payments are received and transferred to the bank account Accurate records are kept with a running balance Annual audit and reporting obligations by certified accountant Money can only be withdrawn from a client account if properly required Keep receipts of all transactions

Answer 48

For claims from clients which provides last resort protection in instances where an RICS regulated firm is unable to repay a clients money. There are no limits and exceptions set out in the scheme rules. Scheme split into commercial and residential surveying firms

Answer 49

Inform RICS by completing a Firm Details Form Appoint a Responsible Principle for all RICS communication Register with RICS Arrange PII Set up CMH procedures Register with the RICS Valuer Registration Scheme if undertaking Redbook Global Valuations Complaints log Appoint a Complaint handling officer Use a logo kit from the RICS for all practice material Plan for succession if sole practitioner Ensure all CPD logged and staff training organised Complete an online RICS Annual Return at the end of each year

Answer 50

Disclose business name Compliance with Equality Act 2010, Financial Services Act 2012, Bribery Act 2010 Appoint a Money Laundering Reporting Officer (Money Laundering Regulations 2017) Health and Safety Compliant (Health and safety act 1974) Asbestos Register Fire Safety compliance (Fire Safety Act, 2021) Compliance with Current Law Register for Data Protection - GDPR and Data protection act 2018

Answer 51

Inform the RICS of closure and deregister Ensure clients are notified and hand over arrangements made to new firm Inform Insurers and ensure 6 years of run-off cover Retain a copy of client documents for 6 years

Answer 52

Simpler Clear examples Diversity Focus Understanding Tech ESG focus

Answer 53

Reduce Bribery in business in the UK and abroad

Answer 54

The giving, offering, promising or receiving of an advantage such as a payment, gift or a service for an action which is illegal or a breach of trust

Answer 55

Proportionality Top Level Commitment Risk assessment Due Diligence Communication Monitoring and Review

Answer 56

Bribing Receiving a bribe Bribing a foreign public official Failing to prevent bribery

Answer 57

Yes, unless they can show that they had adequate policies and procedures in place to combat bribery

Answer 58

Certain forms of lavish entertainment could be classified as bribery. BUT hospitality is not prohibited by the ACT. If the gift is reasonable and proportionate it will not constitute an offence as long as it is recorded on the gift register.

Answer 59

The Serious Fraud Office

Answer 60

Maximum penalty of 10 years imprisonment and / or unlimited fine for individuals Companies face an unlimited fine

Ethics Theory Flashcards

(85 cards)